More than ever, the business headlines and social media chatter seem to be dominated by the nation’s largest companies and biggest brands. From Elon Musk’s tweets, Levi’s IPO, and Disney’s acquisition of Fox, the big corporate powerhouses dominate our attention. To be sure, these companies have a sizable impact on the economy and are perceived to be the leaders when it comes to product innovation and corporate stewardship. But what is often overlooked is how important businesses in the middle market are to ensuring the prosperity we have experienced over the last 30 years is shared by as many as possible.

Big brands certainly move the markets, but we need to remember that the middle market (defined as companies with revenues between $10 million and $1 billion) accounts for more than one-third the nation’s GDP and total employment, according to the National Center for the Middle Market. They are also responsible for 60 percent of new jobs in the private sector. Employment at middle-market companies grew by 5.4 percent last year alone.

As private equity investors in founder-led and family-owned middle-market companies, we play a role in helping this under-recognized part of the economy thrive. A significant part of that role involves thinking carefully about how we can add value to a business not just by increasing the top line and bottom line but also by collaborating with management to plan for the long term by adopting and improving on the best global business practices. We see opportunity partnering with middle-market companies to move to the next level of social and corporate responsibility—focusing on all stakeholders, including the communities they operate in and the institutions that support them.

What is more, we’ve found that these businesses, especially ones that are family owned, are eager partners in ensuring their prosperity is shared by everyone. As we have evaluated hundreds of middle-market businesses over the years, we see a very real desire to invest heavily in innovation and disruption. In fact, with careful cultivation, these companies are in a unique position to more nimbly adopt progressive business practices or address societal inequalities through corporate initiatives. That results in prosperity not only for our investors and partners but also for employees, other stakeholders, and the surrounding community.

According to the US Chamber of Commerce Foundation, middle-market companies are the “life blood” of Corporate Social Responsibility (CSR). We cannot have shared prosperity without focusing more on these companies, as they tend to have a greater direct effect on the communities in which they operate and on individual employees and other stakeholders. Many middle-market companies are still family owned, with strong cultures and shared values that have led to both business success and community engagement. Part of our job as investors and partners is to make sure those values are preserved as we help take the company to the next level of growth.

A closer look at the corporate behavior of middle-market companies shows very encouraging signs. A recent report created by the RSM US Middle Market Business Index, in conjunction with Moody’s Analytics and the US Chamber of Commerce, found that 90 percent of middle-market companies are engaged in some form of CSR. These companies invest broadly in community organizations, education, children and youth issues, and other areas to support the prosperity of their local communities, combat inequalities, and improve their business environment. The same report found that 88 percent of middle-market companies are focused on diversity and inclusion, indicating a commitment to equitable business models and inclusive growth as well.

It is clear that businesses in the middle market are poised to employ ever progressive business practices in the future, but we, as stewards of capital, can play a significant role in helping them advance the prosperity of their communities and remain focused on the long term. In turn, these businesses will attract the next generation of business leaders, to whom a professional commitment to the well-being of society as a whole is increasingly important.

While the nation’s largest companies are vitally important to the economy, thought leaders, institutions, and investors shouldn’t ignore the importance of smaller companies in shaping our shared prosperity. With the right attention and support, we will only see the middle market grow as an economic force, as well as a source of innovation and a driver of shared prosperity.

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KING OF PRUSSIA, PA, April 1, 2019/PRNewswire/ – QualTek, a leading provider of turnkey solutions, including engineering, installation, fulfillment, recovery logistics and program management to the North American telecommunications and power sectors, is pleased to announce it has acquired Vertical Limit LLC, a highly-respected provider of infrastructure services to the wireless telecommunications industry. The acquisition of Vertical Limit continues QualTek’s expansion strategy across North America as demand from wireless customers and partners continues to grow with significant 5G expansion nationwide.

Founded in 2002 and headquartered in Wanamingo, MN, Vertical Limit has built a significant presence across the Midwest, Great Lakes and Rocky Mountain regions with a large customer base of major wireless carriers.

“Vertical Limit has built an impressive track record of high-quality service. We are very excited to welcome their employees and management team to the QualTek team,” said Scott Hisey, CEO of QualTek. “We continue to grow our employee base and geographic footprint in response to increasing demand from our customers across the telecommunications, infrastructure and power industries and the acquisition of Vertical Limit is an important part of our long-term strategy.”

“Joining QualTek will allow us to diversify our customer and geographic base while maintaining the high quality and safety standards that we are known for,” said Erik Bicknese, CEO of Vertical Limit. “We are excited to be able to leverage QualTek’s resources and knowledge base for the benefit of our employees and partners across North America.”

About QualTek
QualTek is one of the largest providers of turnkey services to the North American telecommunications, infrastructure and power industries. Through its 85 service locations and 4,000 dedicated professionals, QualTek provides its partners and clients with a range of services including engineering, construction, disaster recovery, project management, customer fulfilment, communications upgrades and infrastructure improvements. QualTek is a premier partner to some of the largest companies in the wireless, satellite, wireline and power sectors. For more information please visit www.qualtekservices.com.

About Vertical Limit
Vertical Limit is a provider of infrastructure services in the wireless telecommunications industry. The Company’s team of wireless experts plan, build, modify, and maintain wireless networks across North America. The Company is headquartered in Minnesota with offices in Colorado, Texas, Wisconsin, and Illinois. For more information please visit www.verticallimit.com.